UK Economic Slowdown Confirmed by New Official Figures
The UK's economic growth slowed in the third quarter of 2024, with GDP rising just 0.1% between July and September, down from 0.2% in the second quarter, which was itself revised down from 0.3%.
A significant factor contributing to this slowdown was a cyberattack on Jaguar Land Rover, which halted production for several weeks. This contributed to a marked decline in car manufacturing, impacting the overall production sector.
Growth in services partly offset these declines in production. Despite the slowdown, third-quarter GDP was still 1.3% higher compared to the same period last year.
The household saving ratio fell to 9.5% during July to September, a drop of 0.7 percentage points and the lowest level in a year. Additionally, disposable income per head decreased by 0.8%.
In response to the economic conditions, the Bank of England cut interest rates to 3.75% the previous week. It anticipates zero GDP growth in the final quarter of 2024, with underlying growth expected to remain around 0.2% per quarter.
For the year 2024 as a whole, GDP growth was 1.1%, and the Office for National Statistics revised its estimate for the fourth quarter up by 0.1 percentage points to 0.3%.
